Qualcomm Shifts Focus to Data Center Growth Led by Amazon Partnership

Qualcomm, the semiconductor giant, outlined its shift away from smartphone roots at the Goldman Sachs Communacopia + Technology Conference 2026. The company is now focusing on data center growth, led by a partnership with Amazon.

The Amazon deal marks a turning point in Qualcomm's data center strategy, which it describes as built around four technology pillars: custom silicon, AI accelerators, CPUs, and connectivity. The agreement covers two product areas: customized silicon and optical connectivity solutions. Revenue from the deal is expected to start in December 2026, with products already in production.

Qualcomm's data center revenue target for fiscal 2027 is about $5 billion, which it has with 'very high confidence.' The company also sees a longer-term goal of $15 billion in fiscal 2029. In addition to the Amazon deal, Qualcomm mentioned another global hyperscaler engagement moving forward with a similar technology scope.

The company's automotive business is also accelerating, and Qualcomm now expects to become the largest chip supplier to the auto industry next year. Revenue growth in this segment is expected to reach $10 billion earlier than previously stated, by 2030 instead of 2031.